Wang Tieliang filed a lawsuit against Huobi and its two partners in Beijing to invalidate his bitcoin transactions on the exchange. Based on Wang, he retreated 1.4 million yuan in Huobi to speculate on bitcoin in October of 2016. But within a month or two, he could not deal with the strain to find himself losing money, and cashed out once and for all.
The plaintiff told the court that his transactions at Huobi ought to be invalidated because bitcoin does not exist:
Bitcoin does not exist and is not a legal tender. Marxism says that a commodity should have price and value and clearly bitcoin can not be classed as a commodity. Besides, bitcoin is not a real currency for it is not issued by the central bank. Therefore, it shall not be used to trade or as a payment method.
Huobi contended that Wang does not know what bitcoin is. And it is not Huobi that exchanged with him, it has other users in the stage. Huobi only functions as a third-party platform that’s been working legitimately. Huobi added that the price of bitcoin is determined by the marketplace, not from the stage.
The next two Beijing-based companies pleaded that they simply assist Huobi get users’ deposits. Therefore, they don’t have anything to do with Wang’s losses.
The court verdict clarified:
When users trade bitcoin they are supposed to fully understand relative risks concerning it. They should invest only the amount they can afford to lose and undertake all responsibilities.
The courtroom judge noticed that bitcoin isn’t a commodity. The PBOC has no right to specify bitcoin as a digital commodity. And Huobi doesn’t have right to exchange bitcoin. It may only provide services.